FTSE 100 up 0.2, FTSE 250 adds 0.3
BM falls after reporting preliminary fullyear results
Paragon Banking jumps after halfyear results

June 5 Reuters British equities rose on Wednesday, buoyed by weakerthanexpected U.S. labour data that fuelled expectations of a rate cut in September, while investors awaited the European Central Bank39;s interest rate decision on Thursday.

The bluechip FTSE 100 gained 0.2 after two sessions of declines, while the midcap FTSE 250 edged up 0.3 to 20,779.84 points.

Investors cheered signs of cooling in the U.S. labour market, where data revealed job openings plunged to their lowest in over three years, reinforcing predictions of a rate cut by the Federal Reserve in September.

Traders are now pricing in a 65 chance of a September rate cut by the Fed.

Spirits were also lifted by the anticipation of a 25 basis points cut by the ECB on Thursday.

Analysts expect the Bank of England to emulate the ECB39;s moves. The British central bank convenes in two weeks to decide on interest rates.

We are finally getting to the point where central banks are going to start cutting interest rates, Fiona Cincotta, senior market analyst at City Index said.

The outlook is looking encouraging and there39;s potential for the FTSE to retake that alltime high over the coming months.

Among individual stocks, Paragon Banking was the top gainer on the midcap index with a 5.2 jump after the lender reported its halfyear results.

Retailer WH Smith gained 3.2…